What causes the supply curve for bread to shift inward What

Solution

A movement in the supply curve will be caused due to a change in price of a particular good or service. Further, supply curve will shift inward if the cost of the producing a particular good increases. Supply curve wil further move inward if the customers or consumers preferences to change in favour of an alternative good or service, Hence the supply curve for bread will shift inward if the cost for producing the bread increases.

The various factors that might cause an increase in the price of bread are as follows:

a. Increase in price of flour

b. Increase in labor wages

c. Increase in price of sugar

d. Increase in transportation costs.

An increase in the input costs will cause an increase in the price of the product thereby causing the supply curve to shift inward.